Tenancy law relation to commercial property

Direct legal advice? Call us: +31 (0)10 209 2777|info@lvh-advocaten.nl

LVH Law Firm Dutch Lawyers, Rotterdam
Specialist areas
- Enterprise and business
  - Commercial contracts
  - Commercial end-user contracts
  - Commercial contracts with third parties
  - Mergers and takeovers
- Conflicts
  - Appeal
  - Disputes after completion of the sale and purchase agreement
- Employees
  - Dismissal
  - Absenteeism due to illness
  - (Amendment of) employment conditions
  - Special terms
  - Reorganisation
  - Employee participation
- Enterprise and Government
- Companies in financial distress
  - Filing for bankruptcy
  - Relaunch after bankruptcy
  - Opposition and appeal in bankruptcy
  - Court Approval of a Private Composition Act
- International
  - Dutch British Desk
Articles
About LVH
- Working at LVH advocaten
- Our team
- Vacancies LVH advocaten
Contact LVH lawyers

Tenancy law relation to commercial propertyadmin2023-09-15T08:14:06+00:00

In real estate there are three types of rent: rent of a house, mid-market office space (think of a shop or catering industry) and other commercial property (such as office space). Different legal rules apply to each type of property. The tenancy law lawyers of LVH Advocaten assist both tenants and landlords in relation to commercial property.

Lease agreement mid-market office space

For most shops, catering and craft businesses, a lease agreement is concluded for medium-sized business premises. The rules that apply to this are based on a high degree of protection for the tenant. This is because it is important for the entrepreneur to be able to build up a business and generate income and goodwill. The protection is expressed in particular in the fixed lease terms, the limited termination options for the lessor, the system of rent adjustment and the right of substitution.

Lease terms for mid-market office space

As a whole, a lease agreement for medium-sized business premises is entered into for a period of 5 + 5 years. After the first period of five years, the tenant and lessor can terminate the lease. If they do not do so, the tenancy agreement will continue for five years. The tenancy agreement often restricts the landlord’s ability to terminate the lease. This gives a tenant security. In addition, the lessor must comply with legal rules when he wants to terminate the lease of a medium-sized business premises. Would you like to know more about the termination possibilities of a lease of medium-sized business premises?Then click on“How does the termination of a tenancy agreement for medium-sized business premises work?”

Rental payments for mid-market office space

Tenant and landlord are allowed to determine the amount of the initial rent for mid-market office space. After the term of the initial lease has expired, the tenant and lessor can renegotiate the rental payment. If the tenant and lessor do not agree on the payment of the new rent, they can have a rent increase or rent reduction determined by the court. For this, the advice of one or more expert(s) must first be obtained. They will examine whether the rent corresponds to that of comparable business premises in the area. Neither can a procedure be started without this expert opinion. Nor can a procedure be started at any time. It is therefore useful to engage the services of a tenancy attorneys of LVH Advocaten.

Replacement of contracting party

A tenant of a mid-market office space has the right of substitution. This means that when the landlord sells its enterprise located in the mid-market office space, the new owner can also take over the lease. The new owner of the business will then take the place of the tenant in the lease agreement. This is important for a (new) tenant, because he can then continue the business in the same premises with the same flow of customers. If the landlord does not cooperate, the tenant can ask the court for permission. A landlord may have good reasons to refuse a substitution, for example because it is uncertain whether the new owner will be able to pay the rent (on time). It is therefore important to seek the advice of a rent lawyer in order to deal with disputes about substitution. Would you like to know more about substitution? Then click on:“How do I transfer a tenancy agreement by means of the right of substitution?”

Lease agreement of other industrial space (office space)

In principle commercial property lease agreement for other industrial space relate to office space, but in fact they include all business space that cannot be regarded as medium-sized business space (see above). These leases are characterised by a high degree of contractual freedom between the parties. The tenant and the landlord may agree on the duration of the lease and how the lease can be terminated. Termination of such a tenancy agreement does not, in principle, lead to any compensation. However, a tenant is entitled to eviction protection. If the landlord has terminated the tenancy agreement and the tenant has, for example, not yet found replacement business premises, the tenant may ask the court for an extension of the eviction period. This can be done a maximum of three times one year. It is also important to submit a petition to the court in good time. This always requires a tenancy law lawyer. You can read more information about eviction protection:“How does eviction protection work for a tenant when renting office space (and other business premises)?”

Lawyer tenancy law business premises

The commercial property tenancy law attorneys of LVH Advocaten frequently assist tenants and landlords of business premises. They advise on (entering into) a tenancy agreement. They also assist tenants and landlords of business premises in tenancy disputes. If necessary, we conduct proceedings in court.

More about Commercial Property and investment

Click further if you would like to know more about how we can advise you on the following areas/topics:

SPECIALIZED LAWYERS

These are our lawyers who are specialized in this area.

Yvonne Jansen

+31 (0)10 209 27 75
jansen@lvh-advocaten.nl
(more…)

More about enterprise & real estate

Temporary law on transparency turboliquidation

February 19, 2024|

The Temporary Act on Transparency Turboliquidation came into force on 15 November 2023. The consequences of this law and the additional conditions that must be met have been written about before (see, for example, the article from 22 March 2023). Despite the increased requirements, turbo liquidation is still a good tool for winding up companies with no operations and assets after 15 November 2023.

Indexation of rent by 14.5% in 2023 not unreasonable

February 16, 2024|

Many lessees of commercial space faced indexation of the rent according to the consumer price index (CPI) by a percentage of 14.5% in 2023. Several tenants of commercial space disagreed, and there have since been court cases about this. From the court rulings, the view emerges that indexation of the rent in 2023 by 14.5% is not unreasonable.

How does rent protection work for tenants of medium business space when terminating the lease?

May 23, 2023|

There are two different lease regimes for the lease of business space: lease for medium business space, such as stores and catering establishments (7:290 business space) and other business space (7:230a business space). This article discusses rent protection for tenants of middle business space, such as stores, catering and crafts (7:290 business space) .

We are a Rotterdam law firm that focuses on providing legal services to companies. Our lawyers have an edge thanks to their knowledge of the various sectors: they know what is going on in the entrepreneur’s business and are focused on practical solutions. We often fulfil the Role of “in-house lawyer”: a fixed and trusted contact point for the company for all legal questions.

More about LVH

SPECIALISMS

Conflicts
Employees

Companies in financial distress
International
Commercial property and investment

HOME

Our Team
Articles
About LVH
Specialisms
Your sector

CONTACT

Visiting address
World Port Center Rotterdam
Wilhelminakade 955
3072 AP Rotterdam

By phone: 010 209 27 77
Fax: 010 209 27 78
E-mail: info@lvh-advocaten.nl

Role of “in-house lawyer”: a fixed and trusted contact point for the company for all legal questions.